Answered: A real-estate appraiser wants to verify…

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.4: Collecting Data

Problem 8E

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Question

A real-estate appraiser wants to verify the market value for homes on the east side of the city that are very similar to size and style. The appraiser wants to test the popular belief that the average sales price is $37.80 per square foot for such homes. Suppose that a random sample of six sales were selected. The sampled sales prices per square foot are $35.00, $38.10, $37.20, $29.80, $30.30, and $35.40. Assuming a normal distribution is a good model for sales, test the claim that the mean sales price per square foot differs from $37.80 at the 1% significance level.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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